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Google, GroupOn: Google Could Not Have Avoided The Deal

TechCrunch: Why Google Hearts Groupon: Groupon is the clear market leader in the fastest growing new category on the Internet .... “I think the way Google will evolve is they will want to control everything significant on the Internet.” ....... Google Places is increasingly front and center on the main search results page for local searches, and VP Marissa Mayer recently switched from Search to now running Location and Local Services. She is known to be a big fan of Groupon .... Through its online-to-offline coupons, Groupon has figured out how to track that last mile in local online commerce between the ad and customers showing up at a store..... Google could start showing Groupon deals as tags on local searches or within Google Maps. The ability to add deals to their Places pages could make Places more appealing to local businesses as well. ..... scaling the business from one which deals with a few hundred businesses per day to tens or hundreds of thousands .... Groupon still requires a large local sales force to manage these deals, and an army of copy writers to make the deals appealing.

This is a case of the dog finally catching up with the car. Google might have missed out on social, but it tried extra hard to get local and location right. That begs the question, Facebook refused to be bought for a billion, and now its market value is 50 billion, did GroupOn just miss out? Image via Wikipedia
On the other hand, unlike Facebook, GroupOn could not do much more in the form of technical innovation. For all its hot and heavy buzz, GroupOn has been a one trick pony. And the founders perhaps knew that.

This aquisition allows GroupOn to integrate itself with many Google offerings.

This is that strike that clears all bases. Google has tried to do many things in the local space over the years. This acquisition ties it all together.